The prices of Chlorinated Polyethylene (CPE) in India and China experienced a marginal incline in early March. This was driven by variations in raw material costs and changing demand patterns. Due to increase in liquid chlorine prices and continued variability in the polyethylene market CPE production costs saw slight increase. Additionally, the demand for CPE was supported by downstream sector operations and infrastructure developments, which led to moderate price changes in both countries.

Early March's CPE pricing was influenced by the availability of liquid chlorine, a key raw material for the synthesis of CPE, as well as market patterns for polyethylene. Liquid chlorine supply tightened in China as some production units reduced operating rates, affecting availability and pushing up costs. The demand for liquid chlorine also increased in India, primarily from chemical and disinfection industries. Additionally, production changes and maintenance shutdowns in significant Chinese petrochemical facilities, the polyethylene market, another important component to produce CPE, also showed mixed trends. The supply of Polyethylene remained under pressure. These factors contributed to the cost inputs of the CPE producers, which led to price changes in both countries.

The use of CPE in PVC modification especially in pipes, cables, and building materials continues to be a major factor in driving demand for the material. Infrastructure expansion in India and China continues to stimulate demand, as both nations invest in large-scale development projects. The gradual resumption of industrial activities after the Chinese New Year also provided renewed support for CPE consumption in China. After the Chinese New Year, the gradual resumption of industrial activities further strengthened China’s consumption of CPE. However, downstream industries remain cautious, with only moderate increases in orders for PVC-modified products. India’s demand growth has been stable keeping pace with the ongoing urbanization and industrial expansions.

The CPE market was greatly impacted by trade flows between India and China as India depends heavily on Chinese imports for a large amount of its supply. Logistical disruptions at major Chinese ports including Shanghai and Ningbo slightly delayed shipments, however, imports remained steady. Additionally, India’s overall polymer imports from China have been strong, showing continued industrial reliance on Chinese supplies. Overall market sentiment was impacted by the US tariff hikes on Chinese goods that were implemented in February and further added uncertainty to global trade flows. Despite this, the demand for CPE in India has remained strong, maintaining stable import levels.

As per ChemAnalyst database, the marginal increase in CPE prices highlights the uncertain balance between demand and supply constraints in India and China in early March. Raw materials Liquid Chlorine and Polyethylene costs particularly led to CPE price swings whereas infrastructure growth and trade factors played a vital role in stabilizing the market. As both nations continue to expand their industrial bases, CPE demand is projected to maintain a steady trend, with prices reflecting the evolving market conditions.